Gold Silver Reports (GSR) – Trade War Hits Stocks as $8 Trillion in Bear Market — The MSCI Emerging Markets Index sank to the lowest in 10 months, while 18 out of 24 currencies tracked by Bloomberg fell. The Shanghai Composite Index has tumbled 20 percent from its peak in January, with China joining nations such as Turkey and Pakistan in crossing that threshold. The risk premium on sovereign bonds over U.S. Treasuries widened.
Traders are grappling with conflicting signals after President Donald Trump hinted Tuesday at a less confrontational path toward curbing Chinese investments in sensitive U.S. technologies. His remarks seemed to favor the approach of Treasury Secretary Steven Mnuchin over National Trade Council Director Peter Navarro. Earlier, President Xi Jinping reportedly said he would strike back. In addition to tension between the world’s two biggest economies, traders are assessing a scenario of accelerated tightening by the Federal Reserve and impact of higher oil prices.
